Myth of Myself said:
The tone and message I got from the passage you quoted from "A Tree Grows in Brooklyn" by Betty Smith implied that making your child believe in Santa Clause is important for them to develop their imagination.[..]
Maybe we all think that it isn't a big deal to pass these fibs along because we were all lied to when we were kids about these cultural myths and have a lingering nosalgia when looking back on them from adulthood. [..]
In the end I understand that it is up to us individually to choose what we want to tell our children and how we raise them, but I do learn a lot from discussions like this and appreciate everyones perspective.
I too am learning so much from everyone's prospective. I have also been trying to think back and remember myself as a kid. There were, IMO, two main parts of the holiday experience. One is a family and community routine, and I think there the minutest experiences, like, the kinds of cookies your Mom bakes for Christmas Eve, take on a cherished meaning. Because they follow a certain sequence, they repeat again and again, they are so stimulating on a sensory level (all the brightness, colors, lights, special occasion clothes, smell of oranges and pine needles), and on the emotional level, they foster the feeling of being together and interconnected. I know I have been sort of thick and oblivious as a kid, but that's really all that mattered for a long time.
The other is the whole myth behind it, and that's where the context is important. The passage I quoted is about a family of immigrants who are leading a very hard life in a new country, and this is why I think for them the stories of fairies and Santa Claus is not just about developing imagination. It's about building resilience and staying connected to their roots, to the "old country", to what defines their family, language and where they came from -- and having a sort of spiritual "bird's eye" prospective about it. Whether it all is relevant for our kids, I do not know. Most likely, it isn't and they need a different "bird's eye" prospective. But, may be it still can use some of the old motives, because they are very robust when their original meaning is purified.
I feel sheepish to admit it but I only figured out that Santa didn't exist when I was 9 y.o. or so, and it was like, "oh, how nice of our parents to do these nice things for us". And after that, my sister and I started putting present for them under the tree, too -- "from Santa Claus". BUT: we only had one Santa Claus, who brought us may be one book or one small toy at a time, and that was it. Here, between a much more generous Santa, Tooth Fairy, Easter Bunny and what not, it's clearly an overkill, and a reaction to all those elaborate ruses crumbling may be different. But then again, it's going back to the commercialization of holidays which is a separate issue.
Well, the holiday season has just started, so I'll have time to mull over it some more ;)